The S&P Healthcare Services Index increased 5.3% over the last month, outperforming the S&P 500, which increased 1.8% over the same period, according to the January 2017 Healthcare Sector Update from Duff & Phelps. The best performing sectors were assisted/independent living (up 17.5%), HCIT (up 10.8%), and emergency services (up 10.6%). The poorest performing sectors were skilled nursing (down 6.3%), diagnostic imaging (down 4.3%), and dialysis services (down 3.4%).
The current median LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 2.34x and 13.2x, respectively. The sectors with the highest valuation multiples include: consumer-directed health and wellness (3.92x LTM revenue, 25.0x LTM EBITDA); HCIT (5.27x LTM revenue, 22.9x LTM EBITDA); other services (2.07x LTM revenue, 19.6x LTM EBITDA); and care management/TPA (1.08x LTM revenue, 19.5x LTM EBITDA).
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